Thai Luxe Enterprises Plc (TLUXE), a SET-listed animal feed producer and trader, has allocated 4 billion baht to develop and operate a geothermal power plant in Japan over the next two years.
The geothermal power plant is located in Oita, a prefecture on Kyushu island.
Chief executive Kittipat Chollavuth said Thai Luxe started diversifying its business into renewable energy by acquiring assets from local businesses in Japan to develop four power generating units there with one megawatt capacity each.
The development of the geothermal project has been done through its wholly owned Thai Luxe Power Co.
The four units have already begun operations -- the first in June and the other two more recently.
Mr Kittipat said the plant could be developed further to expand power generating capacity to 42MW within the next two years.
Thai Luxe plans to add another 8MW by acquiring power plants in Japan, making the company's total capacity 50MW.
He said the expansion of its business and power generating capacity as well future joint ventures will be done via its wholly-owned subsidiary, PPSN Co, and a local Japanese business, Setouichi Natural Energy Co.
The power produced from the plant will be sold to Kyushu Power Electricity with a feed-in tariff rate of 40 yen per kilowatt hour, excluding VAT.
He expects its total revenue to rise above 3.2 billion baht in 2018, compared with 2.3 billion forecast for 2017, due largely to strong growth of its animal feed business and rising revenue from its renewable power business.
He said the pandemic of the early mortality syndrome disease afflicting shrimp farms has subsided, resulting in a revival for the business and rising demand for shrimp feed meal.
The company invested 1.5 billion baht in 2015-16 and aims to invest another 2.3 billion baht in Japan next year.
Mr Kittipat said revenue from renewable power is expected to generate 16% of total revenue in 2018, up from 1% at present.
TLUXE shares closed last Friday on the Stock Exchange of Thailand at 8.95 baht, up 15 satang, in trade worth 9.07 million baht.